Worried about chartering a container ship into the Red Sea? No problem, just fix a Chinese ship.
That appears to be the preference of a handful of Middle East liner operators that continue to trade into the region.
It is a strategy that is helping to lift the boxship charter market to its highest level in at least nine months.
Average container ship earnings are at their highest since July 2023 at $23,748 per day, according to shipbroker Clarksons.
That has taken charter rates back to levels seen at the tail end of the greatest boom in container shipping history.
Momentum remains strong and there are expectations of further rises in the coming weeks, helped by premiums that are paid for vessels for Red Sea trading.
Leading the charge for Chinese-owned ships is SeaLead Shipping, which has been coughing up to take Chinese boxships for its Middle East services.
The Singapore-based company has secured a handful of panamaxes from China’s Zhonggu Logistics.
The most recent is the extension of the charter of the 4,636-teu Zhong Gu Xi An (built 2023) for 12 to 14 months at a reported rate of $32,000 per day for its Asia to Middle East service.
The rate is up by around one-quarter over a month when SeaLead fixed sister ships on similar terms at around $26,000 per day.
SeaLead is the most active of a number of regional operators taking Chinese vessels that include Emirates Shipping Line and Dubai-based Global Feeder Shipping.
The company has also fixed the 4,636-teu Liang Xiang 85 (built 2024) for 12 months at $27,250 per day.
The vessel is a newbuild being delivered to Xiamen Jixiang Shipping of China.
A SeaLead spokesperson said the Chinese ships are not meant for the Red Sea service, but to replace some tonnage for its other services. These are its FAM (Far East to Middle East), FIX1 (China to East India) and SAE (China to Australia) services.
The flip side of the coin is that Chinese liner operators also have to pay a premium to secure ships for their Middle East services.
That is reflected in the fixture by Cosco Shipping Lines of the 3,534-teu Gottfried Schulte (built 2006) for a year at a reported $25,000 per day.
The steady increase in charter earnings is affecting all sizes of boxships.
SeaLead is reported to be paying $20,500 per day to take the 2,764-teu TSS Amber (built 2004) from United Arab Emirates-based Tehama Shipping.
The rates suggest potential trading through the Red Sea, says shipbroker Braemar.
Dubai-registered Aladin Express has chartered the 1,900-teu Borkum (built 2023) from Germany’s Briese Schiffahrt for six months at $15,850 per day.
China United Lines has taken the 1,781-teu ASL Haiphong (built 2024) for six to eight months at $19,000 per day for its Red Sea service.
Achilles heel
The increase in charter earnings comes despite a weakening of the freight market.
The FBX Global Container Index was trading down at $2,381 per 40-foot equivalent unit (feu) on Tuesday, compared with $3,482 per feu in mid-February.
Liner operators are confident of rising container volumes in the coming months.
Several operators are hoping to stem the decline and have implemented general rate increases from the beginning of May.
